10:20 26.05.2017

Minister Omelyan presses for return of Ukrzaliznytsia under Infrastructure Ministry's management

2 min read
Minister Omelyan presses for return of Ukrzaliznytsia under Infrastructure Ministry's management

Infrastructure Minister Volodymyr Omelyan says he is going to insist that PJSC Ukrzaliznytsia, Ukraine's railways operator, be returned under his ministry's management.

"Without question - what has been happening now is a complete mess: the Economy Ministry does not understand what to do with Ukrzaliznytsia, Ukrzaliznytsia, in turn, has no idea how to develop according to its own strategy, while Infrastructure Ministry handles the transport balance strategy for the whole country," Omelyan said on Zik TV Channel on Thursday evening..

As reported in January 2017 with reference to State Secretary of the Ministry of Infrastructure Andriy Galushchak, the Cabinet of Ministers transferred PJSC Ukrzaliznytsia to the government, aiming to improve the efficiency of its corporate governance.

In his words, having taken such a decision, the government brought the company's bylaws in line with the law on the special aspects of the creation of the public joint-stock company for public railway transport.

Galushchak underscored that such amendments to the bylaws were aimed at creating conditions for the reform of corporate governance of the company.

Under the law, its sole shareholder is the Cabinet of Ministers.

"From now on, the government as a shareholder will be able to quickly make effective decisions necessary for the functioning of the company and reforms," he said.

However, he added, the role of the supervisory board of Ukrzaliznytsia as a management body headed by First Deputy Minister of Infrastructure Yevhen Kravtsov should be strengthened.

"The Infrastructure Ministry will be able to concentrate on its main function - the state policy in the sphere of railway transport, without being distracted by administrative issues," Galushchak said.

According to him, this will eventually allow the formation of a new legislative basis for the development and functioning of the railway transport.

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